Financial planning
When an advisor suggests or proposes a best course of action for a client to follow
What is a recommendation
What type of company creates or manufactures an annuity product for policy holders
What is an insurance company
The price you paid to purchase securities to be compared to your gain
What is cost basis
What is a risk tolerance questionairre
What age do widow's benefits generally begin
The abbreviation for the Certified Financial Planner designation
What is CFP
A good choice for an investor looking for a low risk way to grow, because there contribution is preserved and their rate is fixed
What is a fixed annuity
The increase in a asset's value and is realized when the asset is sold
What is a capital gain
This strategy involves realigning the weightings of a portfolio of assets by periodically buying or selling assets to keep the original asset allocation.
What is Asset Rebalancing
An Investment vehicle that allows you to save for retirement tax deferred and take out money tax free.
What is a Roth IRA
The software we use to project our client's financial future.
What is Money Guide Pro
Purchased with a lump sum and starts paying out Periodic (example is monthly) payments within the year.
What is an Immediate/SPIA annuity
Result from selling capital assets owned for more than 1 year.
What is a long term capital gain
Name 3 Asset classes you might find in a traditional asset allocation model
What are
Cash, US bonds, US stocks(large, small, mid), commodities, alternatives, international stocks, emerging market stocks, Reits, Global bonds
The first planning stage of the financial planning process.
What is Discovery
What is the major tax benefit of an annuity product
What is tax deferral
When you contribute to a non deductible traditional IRA, and then immediately transfer those funds to a Roth IRA
What is a backdoor roth conversion
the tendency or Bias to rely too heavily on, or anchor to, a past reference or one piece of information when making a decision
Anchoring Bias
What is the IRS maximum contribution that you can make to a 401(k) plan in 2023 if you are under age 50
What is $22,500
A model used in financial planning to predict the probability of a variety of outcomes when the potential for random variables is present.
What is Monte Carlo
The type of annuity product that contains market risk
What is a variable annuity
what is the penalty % on a pre 59.5 distribution from an annuity that has accumulated interest.
What is 10%
A Strategy where you sell an investment that's underperforming and losing money. Then, you use that loss to reduce your taxable capital gains and potentially offset up to $3,000 of your ordinary income.
What is tax loss harvesting
The type of retirement plan that an employee of a Public School or non profit might contribute to
What is a 403(b) plan